LEASH

3 years ago

Feds to Rein in Biggest Banks

On issues ranging from capital requirements to leverage ratios, federal regulators are beginning to move to curb the systemic risk posed by the nation’s largest banks. Beginning next week regulators are expected to raise equity requirements to 5 percent or 6 percent. In addition, the Federal Reserve is likely to set requirements for long-term debt and surcharges and capital requirements for volatile short-term funding. After much lobbying and outcry, substantial exceptions are expected to be made for small banks.